Petroleum Ministry seeks Rs. 19,620 crore compensation

The Finance Ministry on Wednesday agreed to give an additional Rs.14,000 crore to oil marketing companies (OMCs) —Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation — to make up for the losses incurred on sale of fuel and cooking gas at subsidised rates.

The OMCs have lost Rs.31,621 crore on selling domestic LPG and kerosene below cost in 2009-10. Of this, the Finance Ministry had previously released Rs.12,000 crore in cash and on Wednesday agreed to give an additional Rs.14,000 crore.